The startups of Africa are in a distinctive position to take advantage of innovation for answering some of the acutest challenges of the continent but urgently require an accredited environment.
This is the view of Abu Cassim, the director and founder of an angel network, Jozi Angels, which invests in startups in their early stage. He said that various opportunities are present in VC frontier markets such as South Africa, Nigeria, and Kenya along with different international evolving markets like Poland, Indonesia, the UAE, and Mexico.
While many Africans are taking to Betway online sports betting in their past time and due to the rising incomes in the country, it is no fact that a startup culture is what the African nations need.
Africa: A Look at How Startups Can Change its Economy
The successful development of VC sector of Africa depends upon various factors, including the identification of additional funding sources for co-investment, such as an appropriate combination of corporate and government funding.
Startups will enormously benefit if the continent’s resources and efforts are aligned together. Cassim explains that the forums such as Africa Innovation Summit help in bringing the pioneers of the continent together. The relationships developed in such summits will travel a long distance to develop common objectives as well as networks all over Africa which will ultimately benefit the startup communities and investments.
How can African Governments go About It?
Various tax and regulatory reforms have the potentiality to open the doors to materialize these opportunities. Such reforms will give the investment landscape of continent a much-required boost. One good example of this possibility is the changes made in the legislation of South Africa. Certain amendments in the Income Tax Act were introduced by the government in 2009 and some more amendments were introduced in 2014.
These changes allowed the investors to gain tax incentives, they could claim back the funds plowed in the approved VC funds. Till November 2017’s end, more than sixty registered S12J VC capital funds were present in South Africa and the investment by this sector is increasing at an admirable 23% annually.
Other dialogue contributors included Nairobi-based I-DEV Worldwide’sHéloïse Zimmermann. He said that sharing the success stories will prove to be beneficial for attracting additional capital to this continent. Whereas empowering the local buyers will help the ecosystem to acquire a knowledge from enterprise networks which every investor brings forward.
After this discussion, people are raising different questions such as, Is Africa rising? or Does Africa has growth opportunities? To be truthful, there are endless unsolved problems in Africa, everyday frustrations, and underserved needs. The new wealth in Africa is being created by solving these problems and developing value, in an advanced way. The latest business opportunities in Africa that will give rise to many millionaires include many fields, from Financial Technology to Film and Movies, Sports Betting and more.
It is said that the believers and visionaries are rewarded. So, people who invest in Africa with a belief and vision will gain huge.